Building on the Introduction to Lean for small businesses, Louise further explores the ideas behind Continuous Improvement and the various tools businesses can use to benefit from Continuous Improvement practice.
As ever - keeping it simple will be at the heart of the presentation!
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Continuous improvement for Small Businesses
1. Continuous Improvement for Small
Business
Building on the Introduction to Lean
Louise will further explore the ideas
behind Continuous Improvement and the
various tools businesses can use to
benefit from Continuous Improvement
practice.
As ever - keeping it simple will be at the
heart of the presentation!
What is…
There is a link at the end of this deck to the associated blog and
webinar recording.
3. What is Lean?
It is……
A way of thinking
A fundamental approach to running a business
A way of looking at the whole company and working out how to make
it more effective at delivering great products and services to
customers……whilst making more money for the company
All about the customer
4. Lean Fundamentals
Respecting, Engaging and Involving employees – at ALL levels
Aligning systems – Getting All Your Ducks in a Row
Continuous Improvement
Reducing Waste
Improving Value
Long Term Approach
For Everyone
5. The CI Fundamentals
Lean is a never ending journey – a journey of Continuous
Improvement
Continuous Improvement is just as important for successful
companies as it is for those who may be struggling
Continuous Improvement – or Kaizen – put simply…. You seek to
improve something every day
Generally not radical change – regular incremental change….the
1%’s
Can be company or customer focussed
Radical change - Kaikaku
6. The Overarching Aim
Strive for perfection through improvement
Eliminate Waste
Continually seek better ways to serve the customer
And in doing that…..
Create a sustainable, thriving business….
For the long haul
7. Kaizen - Definition
Japanese Characters:
‘Kai’ – “Change”
‘Zen’ – “To see, or to gain wisdom from doing”
Combined = Change for the Better, or
Continuous Improvement
8. Kaizen
A Way of Life – Regular, daily activity
Process & Results – Big Picture not just the individual issue
People First – Eliminating ‘hard’ work
No blame or judgement (Waste)
Involves Everyone
Goes to the source of the problem
9. 7 Principles
Improvements are generally based on small
changes, not major shifts or new inventions
Ideas come from employees
Incremental improvements are typically
inexpensive to implement
10. 7 Principles
Employees take ownership and are
accountable for improvement
Improvement is reflective
Improvement is measurable and potentially
repeatable
Observe – Don’t Assume
11. Why Does It Work?
It’s not rocket science – simple principles
and a large dose of common sense
You are probably doing ‘Continuous
Improvement’ things every day without
really thinking about it
12. Continuous Improvement in Practice
Eliminating Waste in the Value Stream
Value Stream Mapping – a new name for….
Process Mapping
Simple Tool
Applicable Across Whole Organisation
Identify Bottlenecks….
13. A Value Stream Map visually maps the flow of steps,
delay, and information required to deliver a product or
service
14. Improving Value by Eliminating Waste
Transportation (between processes)
Waiting – Idle Time
Overproduction
Defects – BOGOF
Stock (RM, WiP, FG)
Movement (within a process)
Extra Work – Not required by Customer
Underutilisation – of people
15. Plan, Do, Check, Act What is the Goal?
What is now
preventing us from
achieving the
goal?
What is ONE step you
can take toward the
goal right now?
Did it work? If
so..Great, do it again!
If not – do something
else
Standardise &
stabilise what worked
– or go through the
process again
16. Standards
Existing operating standards – defined & followed?
Kaizen requires standards – specifications, processes, systems,
procedures, work instructions
SDCA – Standardise, Do, Check, Act
Relevance to Small Businesses….
Measurable – make sure you are achieving something!!
17. 5 Whys & a What…
A simple but powerful tool
5 Why’s – Getting under the
surface
But then……What?
19. Types of Projects
Individual
Work area or performance
Low investment / self-implementation
Group
Larger, longer lasting
- Management – strategic, admin, support
- Work Team – whole team not individuals
20. Key Principles
The 7 Principles
Go to the source of the problem – Observe, Don’t
Assume
Incremental Improvement
Management does NOT have all the answers
Cross functional teams – where possible!
Standardisation
Continual process – the 1%’s
21. Continuous Improvement Mindset
No matter where we are,
or what we have achieved,
we can always achieve something more
Thriving on Progress
One In…All In
22. Avoiding Drudgery….
Lead by Example
Clear vision of the future
Clear Roles & Responsibilities
Identify the Terrorists – and bring them on board
Face up to problems quickly
Reward the right behaviours
Do what you say you will do
NOT ROCKET SCIENCE!!!
23. Lean / CI Principles
Lead & Manage
Less is More
Build in Standards
Never Be Satisfied
Challenge and be Challenged
Pick the Right Tools / People
Look at the WHOLE Organisation
24. Summary
Lean Refresher
Put into Small Business context
Making it work for you
Just scratching the surface
Encourage a deeper look
Just ask…you know where to find me
Above all remember…..
26. BizSmart aims to help business owners of small and medium sized
businesses to create value and scale their businesses through sound
practical business support by providing insight, Clarity combined with a
real determination to help you succeed.
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You can read the associated blog and listen to a live recording of this presentation
by clicking here
You can read Louise’s profile Louise Blunt BizSmart Core Advisor